Your small business accounts receivable and debt collection solutions...
Small business often faces big problems when it comes to accounts receivable and debt collections issues. Most of my articles are directed toward educating you on how to do things yourselves, and a little bit about how we can help you beyond that. Excuse me if this article is a bit self promoting, but what we offer to small businesses, professional service firms and freelancers is so unique and hard to find that if I don't toot our horn once in a while too many hard working businesses will lose money to difficult clients.Here are some of the common problems you're facing, followed by the solutions (that's where we come in). If you're having one of these problems, match it up to its solution in the list below:
1.) Accounting functions aren't your specialty. Especially when it comes to asking for money.
2.) You cannot afford experienced staff to do the tasks. You don't have the square footage, payroll space, and don't want the cost and risk involved with bad hires.
3.) Debt Collection agencies won't help you because you don't have hundreds of accounts to place, or your balances aren't sufficient.
4.) You don't want to deal with the extra time and hassle of dealing with a debt collector company where you have to talk to a salesperson and don't know who is actually collecting your accounts and dealing with your customers.
5.) You think that having a "collection agency" call your customers will hurt your relationships or reputation.
6.) You're writing off costly losses at the end of each year and losing hard earned profit that you could be using to grow or simply sustain your business.
7.) Your dealing with anger and stress over large balances that a client or clients owe you but you just don't know where to turn.
8.) You think that getting a lawyer to litigate, or going to small claims court, will help your chances of recovery.The solutions and how we can help you in an easy and cost effective way;
1.) We know the best practices for accounting and back office procedures. Having been in between hundreds of companies in dozens of industries, we've seen it all and know what works best for your specific type and size of business. We are also well versed in accounts receivable and collections. We know how to speed up receivables and get you a cash infusion from your more delinquent and difficult customers. We'll maximize every available dollar that's humanly possible to get into your bank account as soon as possible!
2.) When Cambridge Receivable Solutions is your trusted accounts receivable and collection department, we represent you with expert level experience. The person representing your business is professional, intelligent, and works with only your overall best interests in mind. Our debt collection services are No Recovery = No Fee. That means FREE if you don't get paid. No more money out of your pocket. We'll get ourselves paid out of the recoveries at a rate that makes sense to your bottom line. Our other services such as collection letter services and consulting offer easy to notice return on investment. Either way the knowledge we pass along while working your accounts will pay dividends for as long as you do business.
3.) We accept single placement accounts because we care about small business. While we specialize in large balance claims we do accepts some minimum balances of $800.00 and there are some cases we won't accept, but we'll do everything possible to make sure you get the best information and solutions. We want to help as many good businesses as possible get paid! We take that seriously.
4.) When you deal with us you are dealing with a small professional service provider. That's right we are a small business too. We aren't a giant call center. We are customized to help your business. You'll deal directly with your personal cash flow consultant who will advise you on all aspects of your business AND be the one who deals with your customers! This is the only way for small and professional businesses to go when it comes to debt collections.
5.) The term debt collector or collection agencies comes with negative connotations thanks to the scores of low experience collection personnel employed by large corporations and predatory lenders. Don't let that cost you money. I have created a professional option for small businesses to maximize their profits, keep their reputations and relationships in tact; all while making sure you're not going to go out of business due to losing hard earned money that you should have already. You can trust us to represent you strictly professionally and within the law. We don't add to your headaches, we remove them!
6.) The money that you "don't have time to deal with" or write off every year because you "don't think they'll ever pay" is the same type of truckloads of cash that we recover for your competitors. This is such a misunderstood area of business. It's no wonder that it puts so many new or small businesses OUT of business. Let us put the money you deserve right where it should be, in your account. All while you continue doing what YOU specialize in and getting more paying customers.
7.) Too many small businesses have accounts receivable and debt collection issue skeletons in their closet. Many times the business owner feels they did something wrong. The past due client has a way of manipulating and stalling businesses into just never following up. We know the way they operate. We know how to get you what you rightfully earned, and show you how to strengthen your processes so you minimize coming across these difficult types as much as possible. The stress, anger and confusion can be bad for your health and your business. Offload this small percentage to us. Dealing with them is our specialty. That's how we add real value to your business. It's not glamorous but someone has to do it. We take pride in getting the good guys paid, the right way!
8.) We are successful in recovering past due debts more often than winning a judgment in court is. Not to mention it's costly, time consuming, very risky, and also is not even a viable option 98% of the time. Let us orchestrate a pre-legal attempt. If that doesn't work, and we think there is money to be had. We'll let you know your next best option. That shows good faith on your part!So long story short, get to know our services. No one has ever had less for having us as their secret cash flow weapon.I'd love to have a no pressure, casual conversation about recovering your past due balances, strengthening your contracts, and making sure you have the fastest possible access to your earned income in the future.
Author's contact information:
President & Principal Consultant
Cambridge Receivable Solutions, LLC
Toll Free: 1-888-908-3905 x 101
This article relates to freelancers, small to medium size businesses, and professional service firms.
Today I want to talk about the main myth with regards to debt collection agency contingency (no fee if no recovery) rates, along with what we are doing to ensure value to our clients. The myth: "Collection agencies typically charge 30-50% fee on recoveries" Who perpetuates this myth, and why?-Collection Attorneys. Collection attorneys help in spreading this myth in order to warm you up for their costly fee structure. Legal action will take up more of your time and resources than the more logical third party collection intervention. A solid pre-legal, collection attempt will, more often than not, increase your return. If the effort is unsuccessful, you pay nothing, and legal action is always available as a last ditch effort. In fact, having attempted an amicable pre-legal solution will strengthen your case if it must go there. Tapping into decades of experience, we'll be the first to point you in that direction if that's what it will take.
-The uninformed. This is to include authors and bloggers who are simply regurgitating dated untruths they got from other unreliable sources, in the name of content, which has watered down the little known reality of debt collections. The spreading of this misinformation is hurting your bottom line. The crucial and necessary profit maximization, through specialized A/R management and collections, is a highly misunderstood and underutilized business function for businesses of all sizes and industries.
To say this myth is an incorrect, dated, and an overly broad assumption, would be an understatement. The fact is your cost will largely be a direct reflection of how you have handled the invoices to date. If your waiting until your invoices are over a year old, then you may be in the neighborhood of 30%, for good reason. Already have judgements? Then they will be in the 40% range. Again, for good reason. 80% of judgements go unpaid and can require extensive expenses to attempt to recover. The majority of placements that need a collection intervention won't fall in those high fee categories. A proper collection strategy through a firm like ours will never leave you with less than you would have without us.
The main factors at play with our rates are in your hands. Most agencies base their rates on the amount of time and resources they will require to be cost effective for BOTH parties, obviously. The amount of time it will take us to turn your coal into diamonds is what decides your rates. Average age, average balance, and volume of accounts are the key factors that will decide your fee structure. Help us help you by getting us involved early and often.
Facts-Having a specialist involved to ensure your cash flow management is structured appropriately throughout the entire cycle is a crucial first step.
-Knowing when, and why, to allow professional help to proactively address problem invoices as they pop up, will always ensure you have more than you would without their assistance.-DRUM ROLL~~~~~ Rates for top notch collection assistance are primarily BELOW 30%, in many cases as low as 10%. If your agency can't show you why their rates make sense to your bottom line, call us, we can! If we can't, then we'll make some suggestions and point you in the right direction. If our relationship won't MAKE you money, we don't want to waste either of our time. Taking on clients for whom we won't be an asset would be completely counter productive for us.
How do we specifically ensure value for our clients? -We are a highly experienced and specialized partner for the industries we serve.
-Our unique set up was built and customized to ensure you more time and money to invest in the business you're in.
-A full service, consultative approach, ensures that you capitalize on our knowledge and experience at every stage of the process.
-Our more cost effective rate structure, and low overhead, ensures our clients top quality service and results.
-While there are some bad collection agencies out there, Cambridge Receivable Solutions is the answer to changing economic times. We are providing innovation to the typical archaic recovery model. Click >HERE< for more information Get to know us better by having a quick look at our home, about, and services pages. Please contact us with questions or for a free, confidential consultation on how we can help you.....at rates that you can be excited about.Contact the Author:
President & Principal Consultant
Cambridge Receivable Solutions, LLC
Toll Free: 1-888-908-3905 Ext.101
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Getting your clients/customers to pay, and pay on time, can be time consuming. Depending on your industry and how you do business, accounts receivable management and collections are a crucial part of your bottom line.
When it comes to maintaining the highest level of cash flow possible, we recommend the following. First of all you'll need to have a clearly spelled out "Terms of Service Contract" thats sets forth the expected payment terms and deadlines. Have the customer sign, date, and go over it with them briefly to drive home what you expect. Depending on the size, and type, of transaction obviously a credit check would make sense (on larger amounts). Have an article in your terms that explains they will be liable for interest, collection costs, and legal fees, upon default. Make sure it is signed, and dated, and include a personal guarantee wherever possible when dealing with businesses in situations where that makes sense.
Beyond doing that basic due diligence, you'll need to be sure to bill them on time with easy to understand invoices. Make their payment options readily available, and as convenient as possible. Have a set timeline/procedure for your recovery of payment. That way, when something goes over 45 days past due you can be ready to step up your efforts. Send out overdue notices that gradually step up the urgency, eventually warning them that collection activity is pending. If there is still no payment at 60 or 90 days it's time to get serious about collecting. This is the point where you need to seek out the professional help of a debt collection agency.
By doing everything mentioned above you will minimize the amounts that ever need to go to collections. There will always be some that need to be handle by the pro's. Rather than stressing yourself or your staff over collection matters that you don't have time for, and aren't experienced enough to do effectively, trust in Cambridge Receivable Solutions to be your trusted recovery partner. We maximize the return on your troubled invoices so that you can maintain higher cash flow. We do so without alienating your clients, or tarnishing your reputation.
There is nothing wrong with establishing a reputation as someone who expects to be paid for the products or services you provide, and by doing it through a professional firm like ours, there is no risk or hassle. So when you need a personal consultant to handle your accounts receivable management, invoices, billing, letter service, commercial or consumer debt collections, call us. We enjoy putting our experience to work to help businesses thrive. We are
an organized, effective Company who loves doing business with the same.